Vodafone In 2012
Vodafone in 2012: Rethinking International Strategy
The case calls for an analysis of the potential benefits from international scope in wireless telecommunications and the development of strategy recommendations for Vodafone. This case offers an opportunity to how to analyze the costs and benefits of international scope in an industry where global scale economies do not mandate an international presence. the benefits of a presence in multiple countries are far from self-evident—some of the most successful wireless communication providers (AT&T, Verizon and China Mobile) are primarily domestic players. (The same issue arises in other industries: in beer, cement, commercial banking, and steel, cross-border acquisitions are creating a few global giants, but again the benefits of multinationality are elusive.)
CASE SPECIFIC QUESTIONS
1. What are the benefits of international scope in wireless telecom?
2. Advise Vodafone on its international strategy. How can Vodafone derive increased value from its international portfolio of businesses? Are there any businesses that Vodafone should divest?
GUIDELINES
How do you view these two lists of telecomm. cos:
Vodafone China Mobile
Telefonica AT&T
Deutsche Telekom Verizon Wireless
Hutchison Whampoa Telecom Italia
Orascom Telecom Telstra
which is it better to be? Which would you prefer to be, a wireless telecom provider with $10 billion of revenue from a single country, or a wireless telecom provider with $10 billion of revenue spread across five countries?”
Key; by having a large market share in a single country, a wireless provider derives two major benefits: economies of scale in infrastructure and other fixed costs and market power.
Hence, like many other service industries, the economics of globalization are very different from those in aerospace, pharmaceuticals, automobiles, or video games where serving the global market is essential to exploit scale economies in product development and production. So, if
The case calls for an analysis of the potential benefits from international scope in wireless telecommunications and the development of strategy recommendations for Vodafone. This case offers an opportunity to how to analyze the costs and benefits of international scope in an industry where global scale economies do not mandate an international presence. the benefits of a presence in multiple countries are far from self-evident—some of the most successful wireless communication providers (AT&T, Verizon and China Mobile) are primarily domestic players. (The same issue arises in other industries: in beer, cement, commercial banking, and steel, cross-border acquisitions are creating a few global giants, but again the benefits of multinationality are elusive.)
CASE SPECIFIC QUESTIONS
1. What are the benefits of international scope in wireless telecom?
2. Advise Vodafone on its international strategy. How can Vodafone derive increased value from its international portfolio of businesses? Are there any businesses that Vodafone should divest?
GUIDELINES
How do you view these two lists of telecomm. cos:
Vodafone China Mobile
Telefonica AT&T
Deutsche Telekom Verizon Wireless
Hutchison Whampoa Telecom Italia
Orascom Telecom Telstra
which is it better to be? Which would you prefer to be, a wireless telecom provider with $10 billion of revenue from a single country, or a wireless telecom provider with $10 billion of revenue spread across five countries?”
Key; by having a large market share in a single country, a wireless provider derives two major benefits: economies of scale in infrastructure and other fixed costs and market power.
Hence, like many other service industries, the economics of globalization are very different from those in aerospace, pharmaceuticals, automobiles, or video games where serving the global market is essential to exploit scale economies in product development and production. So, if